Spain's telecom sector may be on the verge of a new consolidation wave as Telefónica S.A. $TEF and MasOrange reportedly engaged in informal discussions over a potential deal involving Vodafone $VOD.L Spain. Although no official agreement has been announced, the reported talks suggest strategic interest in reshaping the competitive landscape following Zegona Communications Plc’s €5 billion acquisition of Vodafone's Spanish assets in 2024. Such consolidation moves are emerging amid intense margin pressure in European telecoms, driven by infrastructure investment demands and slowing subscriber growth.